The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-05
Last Nights Conference with the Stand
ard Oil Companys Agents.
They Explain Why Some of the Conditions of
the Common Councils Pipe Line 0rdi-
nance Are Not Acceptable.
They Object to the Proposed Restrictions
on the Charges for Natural Gas,
And Are Unwilling to Supply the City with
Fuel Gratuitously-The Kind of an
Ordinance They Want.


business and professional men at the New Deni-
son last night, to consider the natural gas pipe
| line question, was, as all other meetings of the
| kind have been, very largely attended. 1t was
| understood that Colonel Payne, of the Standard
| Oil Trust. would be there and the interest felt
| in whatever he might say in explaining the
| position of his company in regard
| to the ordinance that has been
passed, probably had more to do with the at
tendance than anything else. However, reports
| were expected from two committees, one ap-
| pointed to confer with the Aldermen in refer
| ence to amending the ordinance and the other to
| consider the consolidation of the local natural
gas companies. Neither committee was ready
to report. although The action of the latter has
already been given in the proposed consolidation
of the Indianapolis Natural-ga Company and
the interests of manufacturers in the company.
w P. Fish back, the chairman of the meeting.
when their prelimina ries had been disposed of,
called Colonel Payne to begin the talk of the
evening. This gentleman, accompanied by
Major Calkins and ]. II. Mansfield, were among
the first to come. The Colonel said he did not
want to be understood debating what should
be DONE His company had for seven years been
supplying natural gas to cities They. are now
piping it into thirty towns in New York Penn
sylvania and Ohio. Lately feeling had
been manifested that the Council should regu-
late the price Of gas. This has grown SO much
hatnatural-gas plants in danger of becom-
ing valueess. 1--WE have from So, 900, 900 to 81,
600, 600 invested in this way" he continued, but
if we Obliged to furnish gas at a fixed price
will have to stop. unless there is a guarantee
given for the money invested We came into
the Indiana field very early. We now have four
wells. They are fairly good wells, large any
in Ohio. but not equal to the wells of Pennsyl-
vania. These wells are shut in. for
not foot of gas is allowed to go to waste. We
think We have sufficient supply to pipe to In
dianapols. but the question is what can we get
for CAST If the people are willing TO allow US
fair return our investment we are willing and
expect to meet any competition, but are not will
ing to compete with the city. There are other
companies DESTROYS of coming here and they
have the means to carry out their purposes
These we expect to meet
The Colonel said his company would agree to
having price stated, but would desire some lee
way. and that could be given in a provision that
company should charge more than % per
cent. of that price. Competition will naturally
reduce the price. I'm the cities where We oper-
ate," the Colonel said I'VE have never raised the
price of gas. but. the contrary, have reduced
it. In Indiana the pressure is about $50 pounds,
in Ohio $50 and in Pennsylvania 600. After the
line is laid. should the supply increase, there
would be tendency to further reduce the price"
His reasoning is that the company should not
be restricted to fixed prices, account of the
risks it undertakes for the business is conducted
the fact that every 1000 feet from well
duces the supply that much When it becomes
so low to be no longer of use other fields
must be found, which would probably add to
the distance and expense of piping. The condi-
tons at Youngstown are about equal to those Of
Indianapolis, but there. he said. tho
gas is piped forty miles through
eighs-inch main. The Standard
company in Youngstown charges $24 per year
for cook stoves, and about $lS for the crate,
provided there is other fire in the house. If
there is a steam heater or furnace in the house
about half the price is charged. For the second
crate So SO per month for seven months. and for
the third 81 so about the charges. For
small size furnace, one that heats from seven to
nine per ysar .h is naeea
said, cannot be fixed, owing to
the varying conditions in the use of fuel and
the different sizes of boilers. But, in answer to
Mr. Richardson, he thought 800 per month would
be approximate cost for loo horse power for
twenty-four hours each day He would euaran-
tee to discount the cost of coal, and the only way
manufacturers and the company could fix prices
would be between themselves.
The questions took rather wide range, one of
which led the Colonel to say that no natural gas
company in Pittsburg has paid the first cost of
its plant. Money has been made by watering
stock and selling out but tho original investment
Of some companies remains chargeable with debt.
After stating that the units of heat
greater in Trenton rock gas than in
that found IN Pennsylvania sandstone, the Colo
mel was asked to the methods used by his COM
pany in laying pipe. He explained chat the
Standard people discarded lead in closing tie
Joints. This dead metal" he said, and
should never be used for house service
count of its liability of leakage. We put iron to
iron, and in making the joints use
twenty-four men, who turn the sections
of pipe into each other to the last thread.
These threads covered with asphalt standard
black, which adheres to the iron and hardens
We have never injured man nor blown up
building. We have an inspector at each pipe
mill who that every section of pipe is of the
proper standard and will stand the test of L. 500
pounds pressure. We no patent devices but
wi first though force
to taper the thread and socket"
To lay ten-inch pipe the size that would be
required for Indianapolis would cost 50 900 per
mile The Standard people, he said always buy
their right of way. They think 1t the safest
plan. Mains would be multiplied rather than
one of large size. 81 wing In the aggregate
cost of gas could be secured t. proper arrange
ment of the pipes. which be made. to do
twice the work of stoves
Colonel Paynes attention was again directed
to prices, when he reiterated his statement that
there would be no objection to prices being
named. In Cleveland and Buffalo the price is
placed at 70 cents per thousand cubic feet. but
the company has never charged that much.
Meters be put in without cost to the
They cost $195 each. Councilman
Swain asked the Colonel if he had studied the
ordinance passed by Council.
at does not need any studying replied COL
Payne
''Wnat are your objections to it2"
Generally, company can work under it
and make money"
''But what are your specific ociectionsqr
why, do you seek to tax an enterprise that
offers to spend large sum of money in your
city-an enterprise that will bring more money
to your city and do it more good than any otherl
Instead of giving bonus, as you no
doubt, would do fer large manufacturing
interest, You tax it by asking it to supply the
city with large amount of free gas You would
raise money to bring manufactory here. but
impose tax of cents per foot on pine laid to
keep another enterprise OUT
THAT Is for street repairs" said the councl
man.
''But We are to give bond of $50. 0oo.s said
the Colonel. Ito repair your streets and keen
them in good condition as we found them
Il would rather trust the Colonel" said d A.
Richardson, ito repair the streets than to have
the city do the work.
According to the Colonel the prices obtained
at Youngstown would be fair for INDIANAPOLIS
His company is willing to have the ordinance
PROVIDE that all manufacturers of any enc class
shall be charged uniform price. and il is salts.
fed with the condition that no pi ves shall be laid
IN the city until they have been laid from the